Ramco Cements spurts after Q2 PAT rises 41% to Rs 243 cr

The Ramco Cements rose 2.28% to Rs 820.25 after the company posted a 41.4% jump in consolidated net profit to Rs 243.52 crore in Q2 September 2020 from Rs 172.26 crore in Q2 September 2019.

The cement manufacturer's net sales declined 5.1% to Rs 1,216.71 crore in Q2 September 2020 over Q2 September 2019. Profit before tax (PBT) came at Rs 342.62 crore in Q2 September 2020, nearly 59% higher than Rs 216 crore in Q2 September 2019. Total tax expense jumped 125% to Rs 103.70 crore in Q2 September 2020 over Q2 September 2019. The result was announced after market hours yesterday, 2 November 2020.

The Ramco Cement said during the quarter, the sale of cement for the company fell 19% to 2.21 million tons from 2.72 million tons posted in the corresponding period of the previous year. The sale was impacted mainly because of lockdown imposed, restricted access in containment zones due to COVID19 and unusually heavy rains in Kerala, Karnataka, AP and Telangana during August and September 2020. Even though it has grown in eastern markets, heavy rains affected the growth rate in those markets. However, the company expects demand to pick up in the coming quarters.

In wind energy segment, the company generated 10.2 crore units as against 11.38 crore units in the previous corresponding period, a fall of 10.37%. The income for the quarter ended 30 September 2020 from the wind power business is Rs 28.76 crore as against Rs 30.59 crore in the previous corresponding period. The operating expenses for the quarter ended 30 September 2020 is Rs 5.51 crore as against Rs 5.22 crore during the previous corresponding period.

The Ramco Cements (TRCL) is a cement manufacturer and markets its products under the Ramco brand.

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